Godrej Properties sells Rs 700 cr worth office space in Mumbai

Realty firm Godrej Properties has sold 2 lakh sq ft area in its commercial building at Bandra-Kurla complex in Mumbai for nearly Rs 700 crore so far this fiscal riding on the demand for prime rent-yielding assets.

Realty firm Godrej Properties has sold 2 lakh sq ft area in its commercial building at Bandra-Kurla complex in Mumbai for nearly Rs 700 crore so far. (Image: Reuters)

Realty firm Godrej Properties has sold 2 lakh sq ft area in its commercial building at Bandra-Kurla complex in Mumbai for nearly Rs 700 crore so far this fiscal riding on the demand for prime rent-yielding assets. In September 2015, Godrej group’s realty firm had sold 4.35 lakh sq ft area in Godrej BKC project to Abbott for Rs 1,480 crore in one of the largest office space deal. According to an investors presentation, Godrej Properties sold 1,99,140 sq ft area for Rs 697 crore during April-December period of 2017-18 fiscal. Now, only 51,000 sq ft area remains to be sold in this 1.3 million sq ft Grade-A commercial building. “Total sales for 9M FY’18 at Godrej BKC stood at Rs 697 crore out of which Rs 558 crore is to be received in Q4 FY’18 and Q1 FY’19,” the presentation said. Overall, Godrej Properties sales bookings rose 140 per cent to Rs 4,029 crore during the first nine months of this fiscal as against Rs 1,681 crore in the corresponding period of the previous year.

In volume terms, sales rose by 90 per cent to 47.85 lakh sq ft during the period under review. Out of total sales, residential segment contributed Rs 3,330 crore while commercial projects accounted for Rs 699 crore, almost all of it in Godrej BKC project. Rent yielding commercial assets are in great demand even as housing segment is witnessing sluggish sales. However, Godrej Properties has bucked this trend and has achieved robust sales bookings in housing segment during last few years. Godrej Properties has posted 35 per cent decline in its net profit at Rs 93 crore in the first nine months of this fiscal.

However, total income rose by 23 per cent to Rs 1,547 crore during April-December period of this fiscal. Its net debt stood at Rs 3,064 crore as on December 31, 2017, slightly less than the previous quarter. Godrej Properties is currently developing about 150 million sq ft area across 67 projects. It has presence in Mumbai, NCR, Kolkata, Chennai, Bengaluru, Hyderabad, Ahmedabad, Kochi, Mangalore, Nagpur, Pune and Chandigarh.